Chart Patterns

Seeing chart patterns is important to trading. Here is an example of a range pattern that developed on the EUR/JPY. When you can see the action it helps alot. As you can see in the chart, after pushing thru the trend line, it reversed and went back into the downtrend, pushing to lower lows. So this is classic definition of a trend – UPTREND: higher highs and higher lows. DOWNTREND: lower highs and lower lows. Hopefully, this will help you look at the charts and see patterns and decipher which direction is best to take. Just think of how many people saw the upward momentum and decided to enter long trades above 168.50. This is why it is important to see the big picture.